Tashkent, Uzbekistan (UzDaily.com) — The "People’s IPO" for shares of the Uzbek Republican Commodity Exchange has officially begun.

On September 26, 2024, a roadshow presentation for the "People’s IPO" of the Uzbek Republican Commodity Exchange (UZEX) was held in Tashkent.

The Chairman of the Board of UZEX, Ziyavidin Badriddinov, presented a report on the exchange’s development dynamics over recent years and its medium-term strategy. He highlighted that the Uzbek Republican Commodity Exchange ranks among the leading commodity exchanges in the CIS regarding infrastructure development and trading volume, which reached US$14 billion last year, accounting for approximately 15% of the country’s GDP.

The exchange demonstrates strong financial performance, reflecting its stability and efficiency. For instance, the net profit for 2023 was 229.2 billion soums, which is 8.7 times higher than the figure for 2018. The net profit for 2024 is expected to reach 321.0 billion soums.

According to the "Methodology for Assessing the Liquidity of Securities," the company’s shares have high liquidity and fall into the highest category – "Premium Class." The exchange is the only joint-stock company included in this category.

Moreover, the Uzbek Republican Commodity Exchange maintains a leading position in dividend payments. Over the past 10 years, the amount of dividends paid has consistently increased, reaching 2,600 soums per share in 2023, which is 412.7% of the nominal value. More than 85% of the exchange’s annual net profit has been directed towards dividend payments in the last four years.

In recent years, due to economic liberalization, the share of foreign investors in the exchange’s shareholder structure has increased to 3.5% and continues to grow.

To enhance transparency in exchange trading and implement digital technologies, the Cabinet of Ministers of the Republic of Uzbekistan adopted Resolution No. 570 on 12 September 2024, "On Measures to Implement Advanced Information Technologies in Exchange Trading."

According to this document, new licensing requirements for commodity exchanges will be introduced starting from 1 November 2024. The authorized capital of the exchange must be at least 100 billion soums, increasing to 200 billion soums by 1 July 2025.

The Uzbek Republican Commodity Exchange plans to increase its authorized capital to 236 billion soums from its own capital by the end of 2024. It is anticipated that the additional share issuance will be distributed among all shareholders.

The UZEX will strive to ensure a transparent mechanism for implementing the "People’s IPO" and increasing authorized capital while protecting shareholders’ rights and ensuring the participation of new investors.

The company will continue to disclose important information on the Electronic Disclosure Platform (EPKI) and its website in accordance with legal requirements.

Going forward, it plans to maintain high growth rates in trading volume across all trading platforms, ensure annual net profit growth, enhance transparency in exchange trading and information security, modernize trading infrastructure, improve trading systems, and upgrade staff qualifications.

During the event, a video presentation was shown about the activities of the Uzbek Republican Commodity Exchange, where participants learned about trading platforms, electronic systems, financial indicators, dividends accrued, and strategic development plans for UZEX.

As part of the "People’s IPO," 4.44% of shares from the authorized capital of the Uzbek Republican Commodity Exchange (over 3 million shares) will be offered, with a price range of 12,900 to 18,000 UZS per share. The minimum number of shares per application is 1 share, and the maximum is 1,000 shares. Applications will be accepted from September 27 to October 28, 2024, and transactions will be executed by 1 November 2024.

To participate in the "People’s IPO," applications for purchasing shares of the Uzbek Republican Commodity Exchange can be submitted through the Electronic Trading Platform "E-AUKSION" or the mobile app "GO INVEST."